Hello there,
This error usually indicate that the Security settings of the specified .vhd are not configured properly.
First, ensure that you are a member of local Administrators group. And make sure the path is not a network mapped drive.
Then, check the specified .vhd file to see if all the Security settings are correct. You can do this by simply creating a new virtual hard disk and comparing the Security settings with the new created .vhd file.
Usually, you should (not limit to) give the current logon user Read and Write permissions, otherwise this problem may occur.
If the same error remains, you may need to re-install the server, upgrade to RC1 (not creating new virtual machines before upgrading)and then create new virtual machines with these existing .vhd files.
Hope this resolves your Query !!
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